27 Feb , 2024 By : Debdeep Gupta
Havells hits 52-week high on Goldman Sachs 'buy' upgrade
Goldman Sachs expects Havells to resume revenue growth in the teens beginning the March quarter, following two consecutive quarters of single-digit growth
Shares of Havells India Limited gained 4 percent to hit a 52-week high of Rs 1,482 in the morning trade on February 27 after Goldman Sachs upgraded the rating for the wires and cables manufacturer to a "buy" from "neutral".
The global brokerage also increased the price target to Rs 1,660 from Rs 1,540, an upside of 17 percent from the previous session's close.
The brokerage views Havells' cost-control initiatives positively, including the strategic move to shift outsourcing to its manufacturing facilities. The company's continued investments in brands and human resources, even during a downturn, are seen as favorable.
Goldman Sachs anticipates that Havells will resume revenue growth in the teens beginning the March quarter, following two consecutive quarters of single-digit growth. The expected improvement in margin contribution from the Lloyd brand will enhance visibility on profitability, subsequently driving an increase in valuation.
In the December quarter, the company reported a 1.4 percent year-on-year (YoY) rise in net profit at Rs 287.9 crore, while the company's revenue increased 6.8 percent to Rs 4,400.6 crore.
At 11:20 am, the stock was trading at Rs 1,424, up 2.2 percent from the previous close on the NSE. In the last three months, the stock has gained 12.5 percent.
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